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What is a power converter?

A power converter is an essential hardware component required in every piece of electrical equipment. The task of the component is to convert the relatively high voltage alternating current from the mains supply into stable low voltage direct current which is required by all electronic equipment. The power converter is also a safety critical component in any system as it protects the user of the equipment from the potentially lethal mains supply.

Who are XP Power's main customers?

XP Power's power converter solutions are typically designed-in to the end products of major Original Equipment Manufacturers (OEM's). The Group has a highly diversified customer base servicing the Heathcare, Industrial Technology and Semiconductor Manufacturing end markets.

What is the life cycle of a typical customer program?

Once designed in to a customer program, XP Power has a revenue annuity over the life cycle of the customer's product which is typically 7 years and sometimes longer depending on the particular application and industry sector.

What is the geographic split of XP Power's business?

XP Power operates from 29 locations in Europe, North America and Asia. Our view is that because we are selling into a wide variety of industrial applications, a significant proportion of our products end up in emerging markets.

What is the value that XP Power provides to its customers?

Our proposition to our customers is to reduce their costs of manufacture and operation. We achieve this by producing new products that consume less power, take up less space, reduce installation times and which are highly reliable in service. These factors add up to enable them to gain a competitive advantage. We also provide excellent service and technical support during the design-in process and can provide the customer with a complete power solution combining a number of power converters, with thermal management, and customised communication between the power solution and their application.

What are the growth drivers for XP Power's markets?

The increasing importance of energy efficiency for environmental, reliability and economic reasons; the necessity for ever smaller products; the accelerating rate of technological change; and the increasing proliferation of electronic equipment, all set a strong foundation for medium term growth in demand for XP Power's products.

What is XP Powers's growth strategy?

XP Power has a long-established strategy of investing in its own product development and manufacturing capabilities to build a market leading product portfolio. The development of an industry leading in-house manufacturing capability and vertical integration is at the heart of this strategy and is leading to multiple new program wins which are driving our growth in market share. We are also expanding our addressable market into high voltage and Radio Frequency (RF) power. We are one of view companies in the world who offer a product portfolio from low to high power and low to high voltage with the capability to integrate these products using our engineering services to provide a complete power solution. This makes us an attractive partner for our kye customers in the Industrial Technology, Healthcare and Semiconductor Manufacturing Equipment sectors.

Why is a manufacturing capability important?

Our major OEM customers require that their suppliers have complete control over the production process to guarantee product quality. These customers will only work with "preferred" or "approved" suppliers whose production facilities have met stringent quality control criteria. Customers are also looking for resilient supply chains and having a facility in both China and Vietnam provides important redundancy and disaster recovery.

What are the main potential risks to the business?

XP Power has a very well diversified customer base so the risk from the loss of an individual customer is minimal. The principle risks relate to disruption to our supply chain or to a major supplier.

Who are XP Power's main competitors?

Like our customer base the competitive landscape is also diverse and the key competitors also vary according to the end market sector. XP Power considers its larger competitors to be Advanced Energy, Cosel, SL Power and TDK-Lambda, all of which have a worldwide capability. In addition there are a large number of much smaller suppliers in the industry who generally serve only their local market.

What differentiates XP Power from its main competitors?

We have the largest and best trained direct sales force in the industry. Our larger competitors are generally not as close to the customer as they often sell through distribution and reps. Therefore we are in a much better position to deliver genuine value to our customers. We also have a much larger standard product portfolio than our competitors which gives us an advantage when customers are choosing preferred suppliers as we are more likely to have a standard product that will work in their application. Finally our smaller size and flexibility allows us to provide excellent service. In summary: Knowledge, Speed and Flexibility set XP Power apart from its competitors.

What is XP Power's attitude to the environment?

XP Power has set its self the goal of the being the leader in our industry in addressing the effect we have on the environment. Our “XP Green Power” products avoid the use of hazardous materials and consume less energy throughout their lifetime significantly reducing CO2 emissions. We have placed environmental performance at the heart of our operations both in terms of minimising the impact its activities have on the environment and in its product development strategy. We believe our Vietnamese facility is in the most environmentally friendly in the industry with its efficient insulation, solar PV, building management system, ultra-efficient air conditioning systems and rain water capture and use. These practices and initiatives not only resonate with our customers and employees; they also make significant commercial sense as countries legislate to reduce power wastage, improve recyclability of manufactured goods and ban the use of harmful chemicals.

XP Power was the first power converter manufacturer to be admitted to full membership of the Responsible Business Alliance (RBA). This organisatin sets out a Code of Conduct setting rigorous standards for the treatment of people, health and safety, environmental performance, business ethics, and the systems to monitor these.

Does XP Power pay a dividend?

Yes, dividends are paid on a quarterly basis, dependent on the performance of the business in the relevant period.